Contributing Firms:
As latest BEPS Guidance, updates, and developments are digested by stakeholders new gaps and areas of concern are coming increasingly into focus, two of which are explored in detail in this issue. The ability of Irish aircraft lessors to meaningfully access the BEPS Pillar 2 substance-based income exclusion for leased aircraft is one such issue with industry representative group Aircraft Leasing Ireland stating that under current guidance there could be ‘a fundamental change to lessors’ Irish corporation tax position”. Looking at insurance there is also a need for guidance for domestic life insurance insurers, specifically on the treatment of ‘old basis business’ under the BEPS regime.
Given how Ireland’s economy has rebounded strongly and the strong growth in tax receipts Budget 2024 should ‘focus on certainty, growth and competitiveness in key areas such as indigenous and multinational businesses, employment, climate change, real estate and tax administration’ writes Deloitte’s Tatiana Kelly.
In the current environment, where new tax regulations are continuously introduced and where technology continuously evolves, Deloitte’s Ronan Ferry and Sudhakar Kandasamy outline how tax functions can best prepare to minimize risk and maximize opportunities, with clean tax data the key to building new technology solutions.
In this month’s roundtable our panel examine a number of BEPS issues related to aircraft leasing, specifically in relation to the substance based income exclusion (SBIE) and whether Irish aircraft leasing companies will be able to access the exclusion. For the domestic life insurance sector, the treatment of ‘old basis business’ under BEPS rules is also examined, with further guidance required. Other topics explored include the EU’s Carbon Border Adjustment Mechanism (CBAM) and what importers need to do now to prepare for the regime; the opportunity to streamline Ireland’s interest deductibility regime; key rulings from the Tax Appeals Commission and the important role that the corporate tax function can play in a company’s ESG strategy.
Can you explain how the substance based income exclusion (SBIE) works? Aircraft Leasing Ireland has said if the Irish industry cannot access the tangible assets SBIE it will result in “a fundamental change to lessors’ Irish corporation tax position.”
Companies have and are making business decisions to align policies and procedures with new ESG and sustainability strategies. Can you discuss the role the tax function can play to ensure such strategies and decisions can avoid negative tax consequences for the company?
Can you comment on the recently published determination of the Tax Appeals Commission on a VAT case (31TACD2023) and its implications for Irish taxpayers?
The Irish Tax Institute says that Ireland has ‘one of the most complicated interest deductibility regimes within the EU.’ How can Ireland’s interest deductibility rules be simplified and brought more in line with other EU jurisdictions?
Can you comment on the Tax Appeals Commission’s most noteworthy determinations in the first half of 2023?
What is the taxation of ‘Old Basis Business’ of life insurance companies in Ireland? Has any guidance been provided on the application of BEPS Pillar II rules for life insurers with ‘Old Basis Business’ in Ireland?
The EU’s Carbon Border Adjustment Mechanism (CBAM) will apply from 1st October 2023. What are the implications for taxpayers and how can corporates prepare for the new rules?
Tangible Assets: Can you explain how the substance based income exclusion (SBIE) works? Aircraft Leasing Ireland has said if the Irish industry cannot access the tangible assets SBIE it will result in "a fundamental change to lessors’ Irish corporation tax position."
ESG and the Tax Function: Companies have and are making business decisions to align policies and procedures with new ESG and sustainability strategies. Can you discuss the role the tax function can play to ensure such strategies and decisions can avoid negative tax consequences for the company?
VAT & EU Law: Can you comment on the recently published determination of the Tax Appeals Commission on a VAT case (31TACD2023) and its implications for Irish taxpayers and the right to a defence under EU law?
Tax Administration: The Irish Tax Institute says that Ireland has ‘one of the most complicated interest deductibility regimes within the EU.’ How can Ireland’s interest deductibility rules be simplified and brought more in line with other EU jurisdictions?
Recent determinations at the Tax Appeals Commission: Can you comment on the Tax Appeals Commission's most noteworthy determinations in the first half of 2023?
Life Insurance - Old Basis Business: What is the taxation of 'Old Basis Business' of life insurance companies in Ireland? Are there concerns regarding this and the application of BEPS Pillar II rules for life insurers in Ireland?
Carbon Tax: The EU’s Carbon Border Adjustment Mechanism (CBAM) will apply from 1st October 2023. What are the implications for tax payers and how can corporates prepare for the new rules?